Dangote signs $400-MM equipment deal with China's XCMG to speed up refinery expansion
Nigeria's Dangote Group has signed a $400-MM equipment deal with China's Xuzhou Construction Machinery Group to speed up the expansion of its oil refinery toward a planned 1.4 MMbpd, the company said on Tuesday.
The additional equipment is expected to support major projects under construction across refining, petrochemicals, agriculture and infrastructure.
Dangote said the XCMG agreement would allow it to acquire a wide range of new heavy-duty machinery to complement existing assets deployed for the refinery build‑out, which the company expects to complete within three years.
As part of the expansion, polypropylene capacity will rise to 2.4 MMtpy from 900,000 tpy. Urea production in Nigeria will triple to 9 MMtpy, alongside an existing 3-MMtpy plant in Ethiopia, positioning the conglomerate as the world's largest urea producer, the company said.
The output of linear alkyl benzene - a key raw material for detergents - will increase to 400,000 tpy, making Dangote the biggest supplier in Africa. Additional base-oil capacity is also planned in the program.
Dangote Group described the equipment deal as a strategic investment aligned with its ambition to become a $100-B enterprise by 2030.
"The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects," it said in a statement.
Owned by Nigerian billionaire Aliko Dangote, the $20-B refinery began operations in 2024 after years of delays. Once fully operational, it is expected to reduce Nigeria's heavy dependence on imported refined fuel and reshape fuel supply across West and Central Africa.
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